Wind Energy Development on State Trust Lands

State trust lands were granted to the State by the Federal Government by the Act of Admission.

Management authority lies with the Board of Land Commissioners (Board).

OSLI serves as the administrative arm for the Board.

To support the Board in applying total asset management principles in order to optimize and diversify trust asset revenue and preserve and enhance trust values

State trust lands were granted to generate income for 23 identified beneficiaries

The Common (Public) Schools are the primary beneficiary (87.9 percent)

3,574,487 surface acres of state trust land generate income to these beneficiaries

Board and OSLI staff have fiduciary duty of undivided loyalty to trust beneficiaries

Temporary Use Permitting

Special Use Leasing- Two party negotiations- Request for Proposal

Reflects Market ValueCompensation on adjacent landsCompensation on similar projects Wind resource on state landsTransmission costsDestination market

Initial Rent: $3 - $11 per acre per year; generally $5 for years 1-4 and $7 for years 5-8Construction Fee: $2000 - $3500 per installed MW; generally $3000 - $3500Operating Royalty: 3% - 8% of Gross; generally 4% years 1-10, 5% years 11-20, 6% thereafter

The Wind Lease Agreement and Chapter 5 Rules (sec. 6f) require compliance with all local, state and federal regulations and applicable planning and zoning laws including those related to wildlife, i.e., ESA.

Executive Order 2008-2

Sage Grouse Core Area Stipulations

On August 7, 2009, the Board of Land Commissioners withdrew state trust lands within core areas from wind energy development until such time as research establishes compatibility of the development with sage grouse populations or identifies best management practices that would mitigate negative impacts.

GovernorGovernor’’s Executive Orders Executive Order20082008--2 2 –– Sage GrouseSage Grouse

All applications to be presented to the Board for consideration are provided to the WY Game and Fish Dept. for review.

Any Game and Fish concerns relative to HMAs, critical wintering areas, etc. are addressed through recommended stipulations presented to the Board for consideration.

Board decisions are made consistent with the Board’s fiduciary responsibilities.

Board Rules and Regulations , Chapter 5 (Special Use Leasing):

-Require lessee notification and request for comment.

- OSLI reviews comments and facilitates discussions between applicant and lessee.

- Lessees are notified 20 days prior to consideration by Board.

- Board determines whether wind lease would substantively impair existing lease use(s).

Chapter 5 of the Rules allows for Surface Impact Payments to compensate the state and existing lessees for potential negative surface impacts such as:

Destruction of forageDisruption of grazing, agricultural or commercial operationsNuisance or inconvenience

Payments are negotiated by the lessee and split with the state

As of August 1, 2009 , the Board has approved 19 wind energy development projects on 45,052 ac.

- 4 are in the operating phase on 9,280 acres- 1 is in the construction phase- 14 are in the initial phase

Projects are located in 10 counties:Carbon (3) and Uinta (1) have operational leasesOne lease is under construction in Albany County

OSLI currently is negotiating 33 lease applications totaling 271,496 acres located in eight counties.

Largest project totals 1,542,529 acres1,336,113 acres BLM152,719 acres State Land53,697 acres developer-owned land

One application represents a project that would be entirely on State Land (18,560 acres)

Project capacities range in size from 50 – 2000 MW

Lynne Boomgaarden – Director, OSLIlboomg@state.wy.us

Jim Arnold – Asst. Director, Surface Divisionjarnol@state.wy.us

Butch Parks – Commercial Property Managercparks@state.wy.us

http://slf-web.state.wy.us